Investment firm Wedbush Securities released its first investment rating of Under Armour, and it’s not great news for the sports brand.
Giving Under Armour a “neutral” rating, analyst Christopher Svezia wrote that the company’s more technical clothing offerings are out of step with what the lifestyle products consumers desire and as a result its “ability to return to its former glory is unknown.”
Apparel and footwear created with a lifestyle focus currently only makes up less than 5% of Under Armour’s total sales, according to Svezia, though the company has been taking steps to offer more options in that category.
Worse, Svezia says missing the trend has Under Armour playing a high stakes game of catch-up.
“It will take years for the category to have a measurable impact to the company with potential starts and stops along the way as lifestyle requires more trial and error and sample…